Strength Seen in Evolent Health (EVH): Can Its 9.5% Jump Turn into More Strength?

Evolent Health EVH shares ended the last trading session 9.5% higher at $5.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 29% gain over the past four weeks.

Evolent Health gained as investors built on momentum from recent strong earnings and new specialty care agreements, including an expanded oncology partnership with a national health plan.

This health care software and consulting services provider is expected to post a quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +90%. Revenues are expected to be $611.13 million, up 37.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Evolent Health, the consensus EPS estimate for the quarter has been revised 11.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EVH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Evolent Health is part of the Zacks Medical Info Systems industry. Claritev Corporation CTEV, another stock in the same industry, closed the last trading session 4.5% lower at $33.15. CTEV has returned 41.4% in the past month.

For Claritev Corporation, the consensus EPS estimate for the upcoming report has changed -9.6% over the past month to -$4.1. This represents a change of -1381.3% from what the company reported a year ago. Claritev Corporation currently has a Zacks Rank of #4 (Sell).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research